Dear Faylee, The break down of 1300 level was only initiated by traders that trades at short times (paper gold). There has no selling at ETF's (real gold holdings). I have added a link / document here that is very interesting. http://seekingalpha.com/article/4012285-sure-gold-positions-take-look-far-east-answers?uprof=45&isDirectRoadblock=true

Yes, I agree with you in this chart, I believe that US FED will not increase the interest rate before the US election date, but then they will more likely to raise it on December after the new US president is elected.